[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1180 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1180

To amend the Internal Revenue Code of 1986 to encourage the production 
                        and use of wind energy.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 30, 1993

  Mr. Grassley (for himself and Mr. Conrad) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to encourage the production 
                        and use of wind energy.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Wind Energy 
Incentives Act of 1993''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. ENERGY-RELATED PRODUCTION CREDITS MAY OFFSET 25 PERCENT OF 
              MINIMUM TAX.

    (a) In General.--Section 38(c) (relating to limitation based on 
amount of tax) is amended by redesignating paragraph (2) as paragraph 
(3) and by inserting after paragraph (1) the following new paragraph:
            ``(2) Energy credits may offset 25 percent of minimum 
        tax.--
                    ``(A) In general.--In the case of the energy 
                credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to such credit, 
                        and
                            ``(ii) for purposes of applying paragraph 
                        (1) to such credit--
                                    ``(I) 75 percent of the tentative 
                                minimum tax shall be substituted for 
                                the tentative minimum tax under 
                                subparagraph (A) thereof, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the energy 
                                credit).
                    ``(B) Energy credit.--For purposes of this 
                paragraph, the term `energy credit' means the portion 
                of the credit under subsection (a) which is 
                attributable to the credit determined under section 
                45(a).''
    (b) Conforming Amendment.--Section 38(d) is amended by adding at 
the end the following new paragraph:
            ``(4) Special rule for energy credit.--Notwithstanding 
        paragraphs (1) and (2), the energy credit described in 
        subsection (b)(8) shall be treated as used last.''
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after June 30, 1993.

SEC. 3. SMALL WIND TURBINES ELIGIBLE FOR ENERGY CREDIT.

    (a) In General.--Subparagraph (A) of section 48(a)(3) (defining 
energy property) is amended by striking ``or'' at the end of clause 
(i), by redesignating clause (ii) as clause (iii), and by inserting 
after clause (i) the following new clause:
                            ``(ii) equipment which uses wind energy to 
                        generate electricity but only if such equipment 
                        has a rated capacity of 50 kilowatts or less 
                        and is not primarily used in the trade or 
                        business of producing electricity for sale to 
                        an unrelated person, or''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after December 31, 1993.

SEC. 4. LESSEES ELIGIBLE FOR CREDIT FOR ELECTRICITY PRODUCED FROM 
              CERTAIN RENEWABLE RESOURCES.

    (a) In General.--Paragraph (3) of section 45(c) (defining qualified 
facility) is amended by striking ``owned by taxpayer'' and inserting 
``operated by the taxpayer''.
    (b) Conforming Amendment.--Paragraph (3) of section 45(d) (relating 
to production attributable to the taxpayer) is amended to read as 
follows:
    ``(c) In the case of a facility in which more than 1 person has an 
interest, except to the extent prescribed in regulations, production 
from the facility shall be allocated among such persons in proportion 
to their respective interests in the gross sales from the facility.''
    (c) Effective Date.--The amendments made by this section shall 
apply to facilities originally placed in service after June 30, 1993.

SEC. 5. SECTION 45 ELIGIBILITY PERIOD.

    Paragraph (3) of section 45(c) (defining qualified facility) is 
amended by striking ``December 31, 1993'' and inserting ``June 30, 
1993''.

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